The best brokers for international stocks trading
This article covers:
- International stock trading explained
- Benefits of trading foreign stocks
- What makes a good online international broker
- Online brokers for international trading comparison
- Top local online brokers that support international trading comparison
- Things to consider when trading as an expat
- Things you should consider before trading
Trading is one of the best ways to be financially secure for both the present and future. And it can be done from anywhere in the world, as long as you have good and stable Internet connection.
So even if you are currently living as an expat in a foreign country, you can still trade and leverage it as a part of your financial flow. However, to ensure fruitful international trading, selecting the best and right international brokers is imperative.
But before that, it is important to know how to manoeuvre international trading before you start venturing into it.
International stock trading explained
International stock trading refers to the frequent transactions of buying and selling foreign stocks with the aim to generate returns that outperform buy-and-hold investing. The profits generated by trading come from buying at a lower price and selling at a higher within a relatively short time. In other words, people who do stock trading are looking to make profits in a specified period of time.
In stock trading, traders will often employ technical analysis to help them find and set up high-probability trading positions.
Benefits of trading foreign stocks
According to Charles Schwab, an American multinational financial services company, there are a few benefits to trading foreign stocks.
The first one is the high potential thanks to the exploration of natural resources and the growing businesses in Brazil, Russia, India, China and South Africa (BRICS) market.
The second benefit is that you will be lowering the risk of losing money during a US downturn when you have foreign stocks in your nest. The last benefit is that foreign stocks add another layer of diversification to the world economic scene.
What makes a good online international broker
When selecting international brokers, it all comes down to having the most products (stocks, bonds, ETF) and a quality platform that is well-equipped with tools. Besides the said qualities, there are also other five important criteria that you should consider when selecting international brokers:
Fee
The trading fees for a given stock trade can be 50 times more with one online broker compared to another online broker. So look for brokers that can provide low fees.
Deposit and withdrawal
Select brokers that can provide you with quick funding and withdrawal. In addition, some brokers are more expensive than others when it comes to funding and withdrawal, so look for brokers that are cost-efficient for funding and withdrawal transactions.
Trading platform
Choose online brokers that have a user-friendly, easy-to-navigate and well-equipped platform. So that it will increase both your comfort and efficiency level while using the platform.
Account opening
Some brokers require a minimum deposit before you can open an account, while some won’t ask you for a fixed first-time deposit. So before you open an account, you may want to check the requirements first.
Markets and products
Find brokers that allow you to trade in different markets, stocks and products (ETF, Bitcoin, etc.); so that you have more asset types to choose from and trade.
Online brokers for international trading comparison
Below we have prepared a list of online brokers for international trading and local (Malaysia) online brokers that support international trading.
Interactive Brokers
Interactive Brokers is suggested for: Investors looking for a broad market environment and a professional trading environment.
| Pros | Cons |
| Low fees, a wide range of products and well-equipped with great research tools. | Complicated account opening procedures and complex desktop trading platform. |
| Account Minimum | No account minimum is required |
| Stock Trading Cost | There are two options: There are no commissions for some ETFs. |
| Option Trades | IBKR Lite: Doesn’t have base commission. But cost 65 cents per contract. IBKR Pro: Doesn’t have base commission. But cost 15 to 65 cents per contract depending on a commission structure (volume discount available.) |
| Account Fees (annual, inactivity, closing, transfer) | None |
| The Number of No-Transaction-Fee Mutual Funds | Over 4,000 U.S. no-transaction-fee mutual funds and over 14,000 offshore no-transaction-fee mutual funds. |
| Tradable products | Stocks Bonds Mutual funds ETF Options Futures Fractional shares Metals Forex |
| Trading Platforms | Both IBKR Lite and IBKR Pro users will have access to the Client Portal trading platform and the powerful Trader Workstation. There are no charges for access to both platforms. |
| Mobile App | IBKR mobile app allows users to experience the desktop version but for mobile devices. Available for both iOS and Android. |
| Research/Data | Extensive research offerings, for both free and subscription versions. |
E*TRADE
E*trade is suggested for: Beginner investors due to the abundance of educational and informational resources.
| Pros | Cons |
| Commission-free stock, options and ETF trades. Also provides easy-to-use tools, large investment selections, and advanced mobile apps. | Hard to navigate through their website. |
| Account Minimum | No account minimum is required |
| Stock Trading Cost | No cost |
| Option Trades | No base commission.$0.65 (volume discount available) |
| Account Fees (annual, inactivity, closing, transfer) | Both annual and inactivity do not have fees. $75 for a full transfer. 25$ for a partial transfer. |
| The Number of No-Transaction-Fee Mutual Funds | Over 4,700 |
| Tradable products | Stocks Bonds Mutual funds ETF Options Futures |
| Trading Platforms | E-Trade Web Power E-Trade |
| Mobile App | E*Trade Mobile Power E*Trade The apps are available on both iOS and Android devices. |
| Research/Data | Allows free and extensive research with 10 external providers at no cost. |
Charles Schwab
Charles Schwab is suggested for: Investors looking for a trading platform that can provide a large selection of mutual funds and zero commission.
| Pros | Cons |
|---|---|
| Have no minimum fees for three platforms equipped with extensive search capabilities and large fund selections. In addition, commission-free stock, options and ETF trades. | Low default cash sweep. |
| Account Minimum | No account minimum is required |
| Stock Trading Cost | No cost |
| Option Trades | No base commission.$0.65 |
| Account Fees (annual, inactivity, closing, transfer) | Both annual and inactivity do not have fees. $50 for a full transfer. 25$ for a partial transfer. |
| The Number of No-Transaction-Fee Mutual Funds | Over 7,100 |
| Tradable products | Stocks Bonds Mutual funds ETF Options Futures Forex |
| Trading Platforms | Three platforms are offered and all three do not have minimum trades or fees. StreeSmart Edge (desktop) Schwab.com StreetSmart Central |
| Mobile App | Has two mobile apps with above-average capabilities. Schwab Mobile StreetSmart Mobile |
| Research/Data | Research for more than 20 providers such as Thompson Reuters, Morningstar and Recognia. |
Robinhood
Robinhood is suggested for: For investors looking to invest in cryptocurrencies.
| Pros | Cons |
| Provides cryptocurrency investment. It also has no account minimum. Robinhood also has a streamlined interface for easy navigation. | It provides limited customer support. Doesn’t offer a retirement account, mutual funds, and bonds. |
| Account Minimum | No account minimum is required |
| Stock Trading Cost | No cost |
| Option Trades | No cost |
| Account Fees (annual, inactivity, closing, transfer) | Both annual and inactivity do not have fees. $100 for outgoing ACAT transfer. |
| The Number of No-Transaction-Fee Mutual Funds | Not rated. |
| Tradable products | Stocks ETF Options Fractional shares Cryptocurrency American Depository Receipts for over 650 global companies |
| Trading Platforms | Simple web platform but able to meet the basic needs. |
| Mobile App | Robinhood mobile app allows for customisation such as alerts, newsfeed, candlestick charts and the ability to listen to live earning calls. |
| Research/Data | Receive news from Bazinga, Reuters, and WSJ. If you are a Gold Member, you will receive news and research from Nasdaq, and Morningstar. For an additional $5 per month receive Nasdaq TotalView level II Market Data. |
Fidelity
Fidelity is suggested for: Investors looking for an online trading broker with strong research tools and a neat mobile platform.
| Pros | Cons |
Fidelity provides expense-ratio-free index funds and has a large selection of research providers. In addition, it is commission-free stock, options and ETF trades. | Relatively high trade fees. |
| Account Minimum | No account minimum is required |
| Stock Trading Cost | No cost |
| Option Trades | No base commission.$0.65 |
| Account Fees (annual, inactivity, closing, transfer) | Both annual and inactivity do not have fees. $50 for a full transfer. 25$ for a partial transfer. |
| The Number of No-Transaction-Fee Mutual Funds | Over 3,300 |
| Tradable products | Stocks Bonds Mutual funds ETF Options Forex |
| Trading Platforms | Free trading platforms: Fidelity.com Active Trader Pro |
| Mobile App | Fidelity offers advanced features on its mobile app. Available on both iOS and Android devices. |
| Research/Data | Offers free and extensive research. |
M1 Finance
M1 Finance is suggested for: Experienced investors who prefer a low-cost customisation portfolio solution and looking for additional product offerings such as the borrow and finance options.
| Pros | Cons |
| Extensive portfolio management and customisation options. M1 Finance also has no fees for trading or account management. | Doesn’t provide tax loss harvesting. Also, M1 Finance doesn’t provide financial planning and advisors. In addition to that, M1 Finance also has limited financial calculators, tools, and goals planning. |
| Account Minimum | $100 $500 for retirement account |
| Stock Trading Cost | No cost |
| Account Fees (annual, inactivity, closing, transfer) | No fee. (Miscellaneous charges may apply) |
| Tradable products | Stocks REIT ETF |
| Trading Platforms | Mobile platform that offers digital banking, cash flow allocation and credit card option. |
| Mobile App | Offer a smooth and almost all-rounding mobile app. |
| Research/Data | Allows you to receive useful newsletters and market information. |
Top local online brokers that support international trading comparison
Hong Leong Investment Bank (HLe Broking)
| Pros | Cons |
Offers low brokerage fees and is well equipped with online trading tools. In addition to that, allows you to do an online account application. | Different brokerage rates for phone orders and online orders. No biometric login for the mobile app version. |
| Tradable Products/Services | Bursa Foreign Share Futures Margins |
| Mobile app | Has a dedicated mobile app for international stock trading. Available on both iOS and Android. |
| Tradable Countries | US, Hong Kong, Shanghai, Australia, Thailand |
| Trading Platform | Has its own dedicated trading with a team that is always ready to assist you. Lets you access the same trading account via its mobile app. |
UTrade by UOB Kay Hian
| Pros | Cons |
| Provides seminars for their customers. In addition to that, they also provide a wide range of trading research tools. | Additional fees for their extra and value-added services. Doesn’t have a dedicated mobile app. Limited Tradable market choice. |
| Tradable Products/Services | Equities Foreign ETF Futures Custodian services Structured warrants Margins |
| Mobile app | None |
| Tradable Countries | Singapore, Hongkong, US |
| Trading Platform | Limited to the website, but the website offers a variety of research tools to help traders with their trading. |
Affin Hwang Investment Bank Berhad
| Pros | Cons |
| Offers a wide range of financial advisory services. Also, offer an online account opening ability. | Funds are only offered to those currently residing in Malaysia. Must be a client of Affin Hwang Bank Berhad to open an account. |
| Tradable Products/Services | Local and Foreign Trading Derivatives Trading Margin Bursa |
| Mobile app | Elnvest Go app available on both iOS and Android |
| Tradable Countries | Singapore, Hongkong, US, UK, Thailand, Australia, Indonesia |
| Trading Platform | Offers a smooth website that lets you receive financial advisory services. |
Mercury Securities
| Pros | Cons |
| Provide the ability to do market and economic research extensively. Also, offers the ability to open a trading account online. | Limited to only four stock exchange markets. Does not allow trades outside of business hours. |
| Tradable Products/Services | Bursa Forex Equities Margin |
| Mobile app | Not stated |
| Tradable Countries | US, UK, Hongkong |
| Trading Platform | Offers MST28 trading plan, their very own enhanced online trading platform equipped with accurate and efficient trading analytics. |
Things to consider when trading as an expat
No matter where you are in the world, you can start trading through your home country’s brokerage. But to ensure that your trading with your home country’s brokerage won’t encounter any roadblocks and issues, you will require the following:
Maintain your home country address
The easiest way to avoid running into problems or roadblocks with bank and brokerage accounts when trading as an expat is by using and maintaining your home country address.
Hire expat-friendly brokers
if you do not own an address in your home country, then you may hire international brokers that are known to work well with expats.
But there is a downside to it; which is the currency exchange rate being higher when you are brokering with international brokers. Fortunately, there is a currency exchange service provider like Instarem that provides competitive rates and low fees for currency exchange.
Use virtual mailbox services
The third option is to subscribe and use virtual mailbox services. By using a virtual mailbox, you will be able to receive the actual address of your home country. Not only can you tie it to brokerage accounts, but you are also able to view your mail from anywhere in the world.
Financial transactions
One of the issues you will face when trading internationally is the currency exchange rates when withdrawing from your trading account, or fee payments to your online trading brokers. Depending on the current rates, it can be quite costly.
However, you can overcome this issue by using a modern-day online remittance service provider like Instarem.
Instarem is an online remittance service that can be used for business purposes or personal use such as online trading.
The perks of using Instarem as your remittance gateway for online trading are that it has low nominal fees and offers competitive FX rates.
Download the app or sign up here.
Things you should consider before trading
When internationally trading for stocks you will need to be mindful of the risks such as liquidity and currency exchange rate fluctuations. Also, you can open an account with a local broker in a country if you are interested in their international market.
Though there are risks to such brokers you have an account with shutdown overnight and absconding your assets. To avoid and minimise such risks, you may invest in a sector fund; investing in a company within a particular geographic region.
Disclaimer: This article is intended for informational purposes only. All details are accurate at the time of publishing. Instarem has no affiliation or relationship with products or vendors mentioned.
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